Efficiency loss (graph)

Efficiency loss (graph) — refers to the reduction in overall economic efficiency depicted graphically, that occurs when the quantity of goods or services produced and consumed is not at the point where marginal cost equals marginal benefit, leading to a deadweight loss on the graph. In a very real sense, it is like money thrown away that benefits no one.

Sources:

Dickson, Vaughan; He, Jian (1997). Optimal Concentration and Deadweight Losses in Canadian Manufacturing. Springer Nature. Retrieved from: https://link.springer.com/article/10.1023/A:1007714502964